Equipping your organization with strategic frameworks to introduce insurtech for multichannel experiences

1. Manuel van Lijf
Digital & Innovation
Equipping your
organization with
strategic frameworks
to introduce insurtech
for multichannel
experiences
3rd Customer experience management
for insurance summit 9-10 December 2020

2. Source:
1- Drivers impacting the insurance market
2

3. • Driven by Big Tech customer experiences and expectations are changing. But not just the usability and experience
, but also the speed of service, price transparency and the Mobile first strategies of many companies.
• For insurance categories such as car-insurance there are many developments going on in that space. Self driving
cars might make the need for traditional car insurance opbsolete. Also car sharing services are driving schemes
such as pay per kilometer.
• Technology push has created many opportunities in insurance. IOT is providing an abundance of data for
underwriting, segmentation or even pro-active claims processing. This in combination with machine learning (AI)
can provide powerfull tools for automation.
• Teleconsultation has seen a huge surge during the Covid pandemic and will likely further drive accesibility of
patient information and data, digital disease management programs and digital symptom checkers.
• Competition is now coming from anywhere. The World InsurTech Report 2020 (WITR) from consulting firm
Capgemini and Efma Policyholders’ willingness to buy insurance from Big Tech has increased from 17 percent in
2016 to to 44 percent in April 2020. To compete with these companies, insurers need to focus on delivering
superior customer experience , crisis-proof processes , offering real-time response.
Slide notes
3

4. 2- Everything tech:
Its not just
Insurtechs attacking
every aspect of your
value chain
4

5. • Fintech: new payment options, financing, installments.
• Madtech: marketing automation, sales automation and use of AI in this space
• Property tech: IOT in buildings and equiptment measuring every aspect, sometimes even triggering the payout
• of insurance claim
• Regtech: Know-your-customer automation or anti money laundering , teleconsultation
• Healthtech: Health data collection with sport watches or IOT, Teleconsultation, Disease management programs and
Welness programs such as Vitality where healthy behaviour could even have an impact on the insurance premium
Slide notes
5

6. 3- Key
pressures
across the
insurance
value chain
6

7. • This picture shows how Insurtechs are either supporting or attacking various stages in the health
insurance value chain.
• Patch, now called Anagram is an online insurance assistant that helps healthcare providers and patients
understand out-of-network benefits in minutes and submit claims online.
• GetSafe is a well-known insurtech startup from Heidelberg that offers an app to manage all insurance
policies. The free GetSafe App helps users manage their insurance policies in one place. The threat here
is that it takes over the full customer experience and interaction from the insurance company.
• Clover partners with primary care physicians using its software platform, the Clover Assistant, to deliver
data-driven, personalized insights at the point of care
Slide notes
7

8. 4- Tech solutions across the insurance value chain
Source:
8

9. • This value chain overview shows a long list of technologies either from the insurance world or beyond
that help optimize the insurance value chain.
• These services are offered by insurtechs, big tech, in-house teams or other IT vendors
• In the discovery phase, AI driven chatbots help customers and call centers with better and faster
information provision
• The quoting and purchasing process sees a lot of ecommerce best practises like retargeting or
abandoned shopping cart tactics, better segmentation, API integration and auto quotation for brokers
and comparison sites. AI and third party data is helping underwriting and tailored packaging of
insurance products.
• For servicing and claims we see smart contracts based on blockchain triggering payment of claims and
also pro-active claims management via connected devices. Also much more automation of claims
processing helps drive cost down and customer experience up.
Slide notes
9

10. Source:
5 – Artificial intelligence applied along the insurance value chain
10

11. • Even one technology (or one set of technologies) can impact the entire insurance value chain as is
shown here by this overview of accenture.
• In the marketing and sales phase machine learning is used to better segment the market, or discover
unserviced customer segments
• Underwriting can benefit from the analysis of large amounts of unstructured data to better assess risk
and opportunities.
• During servicing and claims management, AI can be used for fraud detection, abuse or simply finding
processing errors.
Slide notes
11

12. 6 - How to set your digital
and innovation priorities
Method 1- Top-down:
Based on overall business priority
Source:
12

13. • If you want to explore working with Insurtech or have made the choice to do so, your digitalization and
innovation objectives need to be clear. There are a variety of methods that you can use to set these
priorities: Top-down, Outside-in, Straight-through or Bottom-up. These methods are often used
together. For example , after setting the top-down D&I goals, technology push is then used to explore
practicle solutions.
• Very common is to directly translate the company priorities to your D&I goals and which Insurtech
solutions you want to test and implement first.
• This Gartner overview shows the business priorities in 2019-2020 for banking and insurance. With
growth being the top priority (Pre-Covid) typically insurance companies would look for Insurtechs
working in the early-value chain phases such as marketing, sales, product and underwriting.
Slide notes
13

14. 6 - How to set
your digital and
innovation
priorities
Method 2 – Outside in:
Technology push
Source:
Hype Cycle for Digital Life
and P&C Insurance
14

15. • Although technology push is sometimes seen as solutions looking for problems it can be a great tool for
discovering opportunities.
• Its typically the innovation teams that would introduce new technologies into the companies to explore
benefits. If done in close coordination with business units and using rapid testing or rapid prototyping it
can bring solutions that would normally not have been discovered.
• Inhouse or external Tech and Innovation Radars are used to keep track of opportunities.
• Depending on the innovation maturity of your organisation you can start looking at very early stage
innovations in the hype cycle (for mature organisation) or look for proven and tested technologies late in
the cycle (immature innovative organisations)
• For example RPA (Robotic Process Automation) is a relatively easy to use technology where many proven
use cases can be found in the industry literature.
Slide notes
15

16. 6 - How to set your digital and innovation priorities
Method 3 - Straight
through the value chain:
Customer journey mapping
Source: https://heartofthecustomer.com/
16

17. • Customer journey mappping is a tool coming from the product design and marketing space.
• Its a very powerfull tool that describes the process, experience and outcomes of different customers.
“Customers” can also be any external stakeholders that frequently interacts with the insurance company
such as member, policy holder, hospital, broker or employee.
• The customer journey map shows not only where you as a company are overperforming or
underperforming it also identifies which moment (called moments of thruth) are most valuable for your
customer.
• What we have done for example, is identify each challenge or problem in the journey and then look for
the digital solutions to solve it. The “Moments of thruth” help determine your priorities.
• Customer journeys also help align the processes of the different departments in your insurance company
Slide notes
17

18. 6 - How to set your digital and innovation priorities:
Method 4 – Bottom up:
Corporate innovation program
BUILD
DISCOVER
LEARN
DO
SPACE
WIN
CO-CREATE
GET INSPIRED
18

19. • The fourth method to identify your Digital and Innovation priorities is the bottom up approach. Again this can be
used in combination with the other 3 methods.
• The bottom up approach is often facilitated by Innovation Labs, teams or programs in companies. This example
shows the various services of the innovation lab in my company.
• The main principle is that we help business units and innovation champions in the business units achieve their
departmental goals. We do this by introducing various tools and methodologies (design thinking) and training
business units to use these.
• We also facilitate by running co-creation workshops, providing space, inspiration through innovation awards and
outside speakers
• We also offer a network of organisations to help find solutions for business problems such as our scouting
network Plug&Play, cooperation with universities and government entities.
Slide notes
19

20. 7 – 2020
Business
priorities
20

21. • Now that we have defined how to set our Digitalization and Innovation priorities we can look at what these
Priorities are for companies in 2020 and post Covid.
• In their World Insurance Report, Cap Gemini shows what the D&I priorities are and if the companies have
the capabilities to adress these needs.
• The report also shows that for 6 out of 10 priorities less than half of the insurance companies say they
have the capabilities to adress the most urgent business needs.
The 5 key focus areas are:
• Responding in real time
• Insurance as a utility
• Crisis proof processes
• A caring partner
• Digital experience
Slide notes
21

22. 8 - Why
Insurtechs:
partnering
for strength
22

23. • Now that we have seen the business needs for digitalization and innovation we can explore the Cooperation
models with Insurtechs.
• From a competence perspective Incumbents and Insurtechs have a lot to offer each other and very much look
they have many complementary skills.
• Although you might expect incumbents to be slow, risk averse and complex organisations they do have assets
and skills that provide a lot of value: data, investment power, customer base and a trusted brand.
• Ofcourse cooperations between incumbents and insurtechs have a set of critical success factors which I will
show on the next slide
Slide notes
23

24. Source: Celent /
9 – Critical success factors
24

25. • The critical success factors of cooperations between Incumbents and Insurtechs are listed here in order of
priority according to research and advisory firm Celent and The Digital Insurance Agenda, the worlds
Leading Insurtech community
They are:
• Creating a common vision and plan
• Overcoming political and legacy barriers, probably mostly on the side of the Incumbent
• Building and effective partnership which is closesly linked to priority number 4:
• Building / leveraging cultural differences.
• As we have seen the differences in skills and culture can very much complement Insurers and Insurtechs.
However there are many cultural differences that need to be overcome as we see on the next slide.
Slide notes
25

26. 10 – Cultural
differences
Source: Celent /
Dimension Insurer Insurtech
26

27. • As you can see from the many cultural differences there are many potential areas of misalignment
• As we saw that a joint plan and vision is the nr 1 key success factor we can also see that culturally the
goals for both can be very different.
• This is particularly visible in the difference between “Decision making” and “Focus on Value”
• For incumbents value is a long term and focussed on stakeholder and members. Insurtechs have much
more short term and exit strategy goals.
Slide notes
27

28. 11 – Collaboration models
Source: Insurtech 2020
28

29. • There are many collaboration models that can be applied and depend on the goal of the cooperation.
The following models are listed in the 2020 Insurtech report from Imaginea.
1. Product development partnerships
2. Acquisition of Insurtechs by Insurers
3. Insurers buying technology or services from Insurtechs
4. Insurers investing in Insurtechs
5. Insurtechs incubated by larger insurers
Slide notes
29

30. 30

31. • If we look at the Venture Scanner funding overview of Insurtechs we see that 2019 was
an absolute record year for investments in Insurtechs
• Due to the Covid crisis the funding in the first quarter of 2020 was much lower than in 2019 but
has caught up considerably in Q 2 and 3.
• The other trends we see in the last 2 years is that most investment funds go to early and late funding
rounds and much less to seed funding. This could be explained by more risk averse investment managers
scared of by the pandemic, or it shows a maturitisation of the industry
Slide notes
31

32. 13 – Liquid ecosystems
Source: 32

33. • Insurtechs and Insurers do not operate in isolation or tandems anymore but much more in ecosystems.
• These ecosystems host a large variety of organisations such as Insurers, consumers, Big Tech, Insurtechs
Governments.
• The ecosystems identified by NTT Data and Everis in their Insurtech Global Outlook report, show four main
ecosystems where insurance is only a part of the service offering:
1. Smart Mobility where insurance in travel, cars, transportation and smart cities seems to be much
more Integrated in the service offering.
2. Healthy living where the role of insurance if more focussed on prevention and partnering than in the
payment of claims
3. Home Safe Home where insurance helps more as an adviser and preventor.
4. Business Shield where the payment of claims is highly automated and driven by IOT.
Slide notes
33

34. Source: 34

35. 14 – Let's not forget
Big Tech
35

36. • Although this presentation is much more focussed on Insurtechs, the triangle would not be complete
without adressing the roles of Big Tech.
• With Big Tech I do not only refer to the Big 5 in the US (Apple, Google, Facebook, Microsoft, Amazon)
but also gigantic Asian players such as Alibaba, Baidu, Tencent
• Each of the three players: Insurer, Insurtech and Big Tech is both driving and serving new players, new
needs and new environments.
• As we see on the next slide Big Tech has aquired, invested or founded many of the Insurtechs now
servicing incumbent players or directly competing with Incumbents.
Slide notes
36

37. Source:
37

38. 15 – 2020 and beyond: innovation trends
Source: EFMA-Accenture Innovation in insurance awards 2020
38

39. Manuel van Lijf
Digital & Innovation
Connect: https://www.linkedin.com/in/manuelvanlijf/
39

40. Sources
• Slide 2 – Report: “Insurance of the Future” What will it look like in 2025? Deloitte, March 2019
https://www2.deloitte.com/be/en/pages/financial-services/articles/insurance-of-the-future.html
• Slide 6 – Article: “How digital business models impact the value chain of health insurers” - Research 2 Guidance, 2018.
https://research2guidance.com/how-digital-business-models-impact-the-value-chain-of-health-insurers/
• Slide 8 – Report: “Insurance of the Future” What will it look like in 2025? Deloitte, March 2019
https://www2.deloitte.com/be/en/pages/financial-services/articles/insurance-of-the-future.html
• Slide 10 – Article: “How to use ai throughout the insurance value chain, starting with sales and distribution”. Accenture insurance, 23 July 2018
https://insuranceblog.accenture.com/how-to-use-ai-throughout-the-insurance-value-chain-starting-with-sales-and-distribution
• Slide 12 – Report: “The 2020 Gartner CEO and senior business executive survey” Gartner, 2020
https://www.gartner.com
• Slide 14 – Report: “Hype Cycle for Digital Life and P&C Insurance” Gartner, 2020
https://www.gartner.com
• Slide 16 – Article: “Reimagining Journey Map Design” Heart of the Customer, 2014
https://heartofthecustomer.com/reimagining-journey-map-design/
• Slide 20 – Report: “– Capgemini Efma World Insurance Report 2020,World Insurance Report” Cap Gemini & EFMA , May 14 2020
https://worldinsurancereport.com/
• Slide 22 – Article: “A new industry model for Insurtech” McKinsey, May 8 2019
https://www.mckinsey.com/industries/financial-services/our-insights/insurance-blog/a-new-industry-model-for-insurtech
• Slide 24 – Article: “Success factors for insurtech / incumbent partnerships” Celent / Digital Insurance Agenda, 21 April 2017
https://www.digitalinsuranceagenda.com/93/success-factors-for-insurtech--incumbent-partnerships/
• Slide 26 – Article: “Success factors for insurtech / incumbent partnerships” Celent / Digital Insurance Agenda, 21 April 2017
https://www.digitalinsuranceagenda.com/93/success-factors-for-insurtech--incumbent-partnerships/
• Slide 28 – Report: “Insurtech 2020” Imaginea Technologies Inc, 2019
https://www.imaginea.com/resource/insurtech-2020-research-report/
40

41. Sources
• Slide 30 – Summary Card: “insurance technology q3 summary card” VentureScanner, 14 October 2020
https://www.venturescanner.com/2020/10/14/insurance-technology-q3-summary-card/
• Slide 32 – Report: “Insurtech Global Outlook ’20” NTT Data / Everis. 2020
https://insurtechnttdata.everis.com/dist/resources/vlarrosa/insurtech/Insurtech-Global-Outlook_Report.pdf
• Slide 34 – Report: “Insurtech Global Outlook ’20” NTT Data / Everis. 2020
https://insurtechnttdata.everis.com/dist/resources/vlarrosa/insurtech/Insurtech-Global-Outlook_Report.pdf
• Slide 35 - Report: “– Capgemini Efma World Insurance Report 2020,World Insurance Report” Cap Gemini & EFMA , May 14 2020
https://worldinsurancereport.com/
• Slide 37 – Report: “Insurtech Global Outlook ’20” NTT Data / Everis. 2020
https://insurtechnttdata.everis.com/dist/resources/vlarrosa/insurtech/Insurtech-Global-Outlook_Report.pdf
• Slide 38 – Report: “Realiging the fundamentals after Covid 19” EFMA-Accenture innovation in insurance awards 2020 trends. EFMA/Accenture 2020
https://financialservices.accenture.com/ins-efma-innovation-awards-2020-rp.html
41